BP sees multi-billion dollar investment in Oman green energy project

@conradprabhu –

MUSCAT: Energy major BP says a proposed green hydrogen project currently under study for potential development in the Sultanate of Oman is envisaged at several gigawatts (GW) of electricity generation capacity, with investment estimated in the “billions” of dollars.

Yousuf al Ojaili (pictured), President – BP Oman, said the project, when eventually implemented, will position the Sultanate of Oman among five major clean energy hubs planned by BP around the globe.

“BP is looking at Oman as one of five clean energy hubs worldwide that BP would like to establish. Why Oman? It’s the strong wind and strong solar capacity in the country, but also because BP has been a very successful investor, welcomed by the government, has an excellent relationship and good project delivery. Our project in Oman will be in gigawatts — we have not yet estimated the total capacity — but it will be significant hopefully, and in gigawatts, and therefore the investment will be in billions”, Al Ojaili stated.

Speaking during an Executive Plenary Session at the SPE Conference held as part of the Oman Petroleum & Energy Show (OPES) on Tuesday, BP’s top executive in Oman said the local venture is one of a large portfolio of clean energy projects of a total capacity of around 50 gigawatts (GW) planned for implementation around the world. A Final Investment Decision (FID) for these schemes is targeted by 2030, he stated.

Earlier this year, BP and the Oman Ministry of Energy and Minerals signed a pair of initial agreements to support the potential development of a multiple gigawatt, world-class renewable energy and green hydrogen development by 2030.

As part of the Strategic Framework Agreement (SFA) and a Renewables Data Collection Agreement, BP said it would capture and evaluate solar and wind data from 8,000km2 of land – an initiative that would support the Omani government in approving the future developments of renewable energy hubs at suitable locations within this area.

The first framework agreement, Al Ojaili said, would enable BP to cooperate with the Omani government on a wide range of renewables-related issues, such as clean energy and green energy hubs, related studies, regulations, policies and so on.

The second agreement will focus on the identification of suitable land. “We will look at some lands in Oman that we think are a target for wind and solar, study them, estimate the electricity that we can generate from these, agree a location and an area, and then talk to the government on possible downstream projects in the form of green hydrogen or green ammonia in one of the areas or ports in Oman.”

Also as part of the latter agreement, BP is now preparing to install meteorological masts at a number of locations around the Sultanate of Oman for data gathering on the renewables potential of these areas.

“We are now procuring the equipment — these are 150-metre tall masts that we want to install in 14 locations in Oman”, said Al Ojaili. “We have submitted a request to the Ministry of Energy and Minerals for the installation of these masts in these 14 locations”.

Asked about BP’s plans, if any, to partner with other players in the delivery of the Oman clean energy project, he stated: “There are interested partners who have knocked on our door, but we would like to finish the study first, estimate the (renewable energy) capacity and then talk about partners. Definitely we would want (a few) to partner with us in this project.”

Significantly, BP is also “screening” opportunities for Carbon Capture and Storage (CCS) in the Sultanate of Oman, although this is at a “very initial stage”, said BP Oman’s President. “We have started to look at it at a very initial level, because if we want to do Blue Hydrogen, then CCS becomes very important”, he added.